HOUSTON, – ConocoPhillips (NYSE: COP) today announced that it has notified government authorities in Kazakhstan and its co-venturers of the company’s intent to sell its 8.4 percent interest in the North Caspian Sea Production Sharing Agreement (Kashagan) to ONGC Videsh Limited.

Subject to various government approvals, Kazakhstan state preemption rights and co-venturers’ preemption rights, ONGC Videsh Limited, the international arm of Oil and Natural Gas Corporation Limited, India, would acquire ConocoPhillips’ interest in Kashagan, which is located in the Kazakh sector of the Caspian Sea.

The transaction is expected to close in the first half of 2013. Expected proceeds are approximately $5 billion, which represents the purchase price plus expected working capital and customary adjustments at closing.

“The sale of this quality asset is an important component of our ongoing strategic asset disposition program,” said Don Wallette, executive vice president, Commercial, Business Development, and Corporate Planning. “We are pleased that ONGC Videsh recognizes the value of this asset.”

At Sept. 30, 2012, the carrying value of the net assets related to ConocoPhillips’ interest in Kashagan was approximately $5.5 billion. ConocoPhillips expects to record an after-tax impairment of approximately $400 million in the fourth quarter of 2012 to reduce the carrying value to fair value.

Through Sept. 30, 2012, the company’s 2012-13 disposition program has yielded proceeds of $2.1 billion. Once closed, this transaction would increase that total to approximately $7 billion, and strongly position the company to accomplish its target of $8-$10 billion by the end of 2013.

The proposed sale of its Kashagan interest is part of ConocoPhillips’ plan to increase value for shareholders through focused capital investments and a commitment to deliver growth in production and cash margins, improved returns on capital, and sector-leading shareholder distributions.

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About ConocoPhillips
Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 30 countries, $115 billion of assets, and approximately 16,700 employees as of Sept. 30, 2012. Production averaged 1.57 million BOE per day for the nine months ended Sept. 30, 2012, and proved reserves were 8.4 billion BOE as of Dec. 31, 2011. For more information, go to www.conocophillips.com.

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